Australian Food and Grocery Council
Australian Food and Grocery Council
Food Export Opportunities in China,
Malaysia and Thailand
Michael Rogers, Manager, Agribusiness Forum
Australian Food and Grocery Council
Food Export Opportunities in Malaysia, Thailand and China
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Market Insight Reports
Australian Industry Statements
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Project supported by Austrade Asian Business Engagement Grants
This activity has received funding from Austrade as part of the Asian Century Business Engagement Plan. The views
expressed herein are not necessarily the views of the Commonwealth of Australia, and the Commonwealth does not
accept any responsibility for any information or advice contained herein.
Australian Food and Grocery Council
OVERVIEW
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Context for Australian food exports
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Market Insight Reports
•
Specific Opportunities
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What next?
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Australian Food and Grocery Council
AUSTRALIA’S GLOBAL POSITION
Agricultural Production in Selected
Countries
Country
Approximate Value
of Agricultural
Production in 2012
(USD)
Australia’s rank as a global food
exporter
Share of World Food Exports in 2011
Rank
Country
%
1
United States
10.2
2
Netherlands
6.2
3
Brazil
5.8
Australia
$45 billion
Brazil
$188 billion
4
Germany
5.8
Canada
$50 billion
5
France
5.7
China
$930 billion
6
China
4.2
7
Argentina
3.4
European Union
$473 billion
8
Canada
3.4
Japan
$100 billion
9
Spain
3.3
United States of
America
$396 billion
10
Belgium
3.2
11
Italy
3.1
12
Indonesia
2.5
13
Malaysia
2.5
14
Thailand
2.5
15
United Kingdom
2.3
16
Australia
2.2
Source: Calculations from OECD Producer Support
Estimates Database
Source: UN Statistics Division (2012) & DAFF
Australian Food Statistics
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Australian Food and Grocery Council
70% INCREASE IN GLOBAL FOOD DEMAND BY 2050
Source: ABARES, Food Demand to 2050: Opportunities for Australian agriculture
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Australian Food and Grocery Council
AUSTRALIA FALLING BEHIND
Australia's falling global competitiveness undermines Food Exports
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11
5
10
10
(%)
9
8
15
7
20
6
5
Australia's Global Competitiveness Ranking
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25
2006
2007
2008
2009
2010
2011
2012
2013
Years
Food Market Share in Key Markets (LH scale)
Australia's Global Competitiveness Ranking (RH scale)
Source: World Economic Forum (2013): Global Competitiveness, & calculations from UN Comtrade Database (2014): Food market Share.
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Australian Food and Grocery Council
MARKET INSIGHT REPORTS
China, Malaysia and Thailand
• Snackfoods
– Chocolate
– Sugar Confectionery
– Cereal-based Bars
• Beverages
– Fruit Juice
– Tea
– Premium Cold Beverages
• Baked Goods
– Biscuits
– Baking Mixes
• Condiments
– Premium Table Sauces
– Jams
Research undertaken by Tradeworthy, Danny Burrows and Kathrin Kittler
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Australian Food and Grocery Council
METHODOLOGY
• Store checks/surveys
• Focussed on premium retail outlets in key centres
– China – Shanghai
– Malaysia – Kuala Lumpur
– Thailand – Bangkok
• Key information on each category (i.e. chocolate, fruit juice, biscuits
etc.) includes:
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price
pack size
key players and share of supermarket shelf
product trends
barriers
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Australian Food and Grocery Council
SUGAR CONFECTIONERY – SHARE OF SHELF
China
Tootsie
7%
Veno
4%
Thailand
Mentos
4%
Sugus, 2%
Tayas
7%
Trident, 4%
Yupi, 4%
Fu Ji Ya
26%
X-IT
5%
Fisherman's
friend, 30%
Extra,
2%
Fini
7%
Katjes
6%
Others ,
10%
Dentyne, 15%
Haribo
13%
Four Seas (Si
Zhou)
2% Mint Plus
Chewy Candy
Perfetti Van
(Kheesan)
Malle - Hard
5%
Candy
19%
Fruit Plus
Chewy
Candy
(Kheesan)
5%
Mentos
7%
Sugus
6%
Malaysia
Others
17%
Markenburg
15%
Mentos, 20%
Haribo,
8%
Lot100
30%
Yupi
10%
Werther's
Original, 5%
Kopiko
5%
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Australian Food and Grocery Council
SUGAR CONFECTIONERY – PRICE, PACKAGE, PROMOTION
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Australian Food and Grocery Council
SURVEY DATA AVAILABLE
Product
& Brand
Top 3
Flavours
Package
Size
Price
Promotions
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Australian Food and Grocery Council
SPECIFIC OPPORTUNITIES
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Across the three markets there is a growing focus on products with reduced
sugar, salt and fat, allergen free and more natural ingredients.
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In China, there is an opportunity for premium chocolates and biscuits with
appropriate packaging to be marketed as gifts
– In Malaysia and Thailand, wealthy consumers are seeking premium quality
chocolate products and are willing to pay for imported product.
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In Malaysia and Thailand, demand for cereal bars and non-alcoholic
beverages is expected to grow rapidly given the broad appeal to the large
number of tourists, expatriates and increasingly wealthy locals.
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Market for table sauces is dominated by local products however Western
style sauces are becoming more popular. Growing demand for new flavour
combinations which build on local tastes.
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Australian Food and Grocery Council
SO WHAT?
Opportunities
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Despite a decline in Australia’s market share in each market, and pricing
pressures, foreign retailers and other buyers are seeking Australian product
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Opportunities for small orders and production runs of processed food products
such as for retailer promotion events
Challenges
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The strong Australian dollar coupled with high production costs means that
Australian products are often some of the most expensive products in China,
Malaysia and Thailand
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product promotion, such as sampling and retail price promotions, is critical for success in each
market.
Exporters need to navigate relevant product registration, retailer listing
processes, and labelling requirements for each country
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given our strict domestic standards and processes, Australian companies and products are
often viewed favourably by foreign regulators but exporters need to ensure that they meet
often very specific requirements (such as documentation) of foreign regulators.
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Australian Food and Grocery Council
WHAT NEXT?
• Review the reports
– Available at www.afgc.org.au or request from [email protected]
• Talk to others about opportunities
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Exporters, freight forwarders, foreign importers, distributors
State Governments
Austrade
Food Innovation Australia Limited
Australian Food and Grocery Council
• Develop an export plan with adequate resourcing, long term
perspective and commitment
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Australian Food and Grocery Council
Australian Food and Grocery Council
Thank you
Australian Food and Grocery Council
CHINA OPPORTUNITIES
Chocolates: Gift giving is an important element of Chinese culture. Premium chocolate products with
appropriate packaging can be marketed as gifts, particularly for festival celebrations.
Sugar Confectionery: There is a trend toward sugar confectionery becoming a more regular snack in the
market however there is a preference for less sweet products.
Cereal Bars: Demand for healthy cereal bars is growing but currently in early phases of market development.
Opportunity exists for Australian exporters to become established as part of growing market.
Fruit Juice: Similar to Australia, there is opportunity for premium fruit juice products in coffee shops in China.
Opportunity exists for carbonated juice products to be sold as non-alcoholic beverages.
Tea: There is currently a strong focus on traditional teas and the market for other types of tea, including
flavoured tea, is in the early stages of development. There is an opportunity to promote Australian products as
clean and safe however it is a very price competitive market.
Premium Cold Beverages: There is a consumer focus on healthy beverages with fruity flavours and
vitamins. A strong opportunity for healthy and natural carbonated beverages exists in the market.
Biscuits: In a highly competitive market, the opportunity for biscuits is in gift giving, particularly in association
with festivals. Products need premium packaging and strong product promotion appropriate for the market.
Baking mixes: The market for baking mixes is in the early stages of development as ovens are not yet widely
available at home. Cake mixes are more popular than bread mixes and a specific demographic is increasingly
baking cakes on the weekend.
Premium Table Sauces: Soy sauce is the first choice for Chinese households, with increasing popularity of
chili and black bean sauces given the familiarity of flavours. Of western style sauces, Worcestershire and
mayonnaise are increasingly popular however new flavour combinations may have greater appeal in a
saturated market.
Jams: The market for jams is characterised for a preference for less sweet products. Jam products will
benefit from heavy promotion, with orange, strawberry, and mixed fruits the current popular flavours.
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Australian Food and Grocery Council
MALAYSIA OPPORTUNITIES
Chocolates: Single serve portions are popular among health conscious consumers. Wealthy consumers are
aware of quality and willing to pay for imported product.
Confectionery: There is growing demand for lower sugar candy, and a general preference for hard candy.
Popular flavours include fruit mixes, coffee and mint.
Cereal Bars: Increasing health consciousness is driving sales of cereal bars with strong demand from
foreigners, students and the elderly.
Fruit Juice: Orange, apple, pineapple, pink guava, and mixed fruit are popular juices in Malaysia with an
increasing focus on health claims and benefits.
Tea: Recently, fruit flavoured teas have been successful in the Malaysian market with a range of more
traditional teas being widely available.
Premium Cold Beverages: Isotonic, milk, and tea based beverages are popular in the Malaysian beverage
market.
Biscuits: Biscuits are a popular snack food in Malaysia. There is a range of opportunities in both sweet and
savoury biscuits.
Baking mixes: Home baking is increasingly popular due to the influence of cooking shows on television and
has created opportunity for both cake and bread mixes.
Premium Table Sauces: Traditional Asian style sauces are popular in Malaysia. There is opportunity to bring
new flavours to market with consideration of Malaysian tastes and preferences.
Jams: While jam is not a feature of the traditional Malaysian diet, there is demand among tourists, expatriates
and young people in Malaysia. Popular flavours include strawberry, pineapple, grape, blackcurrant and mixed
fruits.
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Australian Food and Grocery Council
THAILAND OPPORTUNITIES
Chocolates: Premium retailers are seeking handcrafted boutique products that can be short and/or limited
production runs. This creates opportunities for Australian producers to trial products.
Confectionery: Thai consumers often prefer sweet candy and there is a growing preference for ‘additive free’
confectionery.
Cereal Bars: The market for cereal bars is expected to grow rapidly in the current market development
phase. Cereal bars are increasingly seen by young and wealthy Thais as a healthy option for breakfast or a
snack ‘on the go’.
Fruit Juice: The fruit juice market is expected to grow rapidly in the short term as Thais consume juice as a
healthy alternative to other beverages. Growth is expected in both single serve (e.g. 200 ml) and large 1 1.25 litre containers.
Tea: The largest market for hot tea in Thailand is expatriates and tourists. Most Western style hot tea is
imported. Opportunity exists for a wide range of traditional and flavoured tea products.
Premium Cold Beverages: Given the tropical climate and large numbers of tourists, there is a wide range of
premium cold beverages available in Thailand. The large value of the market (AUD 1.26 billion) and
significant growth (above 15 per cent CAGR to 2017) presents opportunity.
Biscuits: Strong growth is expected in the biscuits category over the short term. Chocolate, strawberry and
butter flavours are popular for sweet biscuits. For savoury biscuits, new and innovative flavours are
increasingly popular.
Baking mixes: The market for cake mixes is in the early stages of development with chocolate, vanilla and
butter being popular flavours.
Premium Table Sauces: Traditional Thai sauces (fish, ginger, and chilli) currently dominate the market
however Western style sauces (including Worcestershire, mayonnaise and mustard) are enjoying strong
growth.
Jams: A growing trend is jam on toast for breakfast, with popular flavours being orange, strawberry and
mixed fruits.
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